Xyratex (Nasdaq: XRTX) is expected to report Q3 earnings on Oct. 2. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Xyratex's revenues will decrease -24.5% and EPS will expand 4.8%.

The average estimate for revenue is $273.3 million. On the bottom line, the average EPS estimate is $0.44.

Revenue details
Last quarter, Xyratex reported revenue of $322.1 million. GAAP reported sales were 4.9% lower than the prior-year quarter's $338.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.32. GAAP EPS were $0.24 for Q2 versus -$0.15 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 16.5%, 360 basis points better than the prior-year quarter. Operating margin was 2.5%, 410 basis points better than the prior-year quarter. Net margin was 2.2%, 350 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.20 billion. The average EPS estimate is $1.65.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 256 members out of 279 rating the stock outperform, and 23 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Xyratex a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Xyratex is hold, with an average price target of $17.50.

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